Lease vs Buy: What to Consider When Shopping for Your Next Car
Are you looking for your next car? Then, you’re probably considering leasing or buying. But which is the better option? When shopping for your next car you will surely want to upgrade from your current vehicle. Given the winter weather we’ve been having in Chicagoland, Rosen Hyundai knows features like all-wheel drive and heated seats sound wonderful. However, when searching are new 2019 Hyundai models, be sure to keep in mind what type of vehicle and what technology features you are looking for. If you are the type to desire an upgraded vehicle every few years you will at least want to consider leasing. However, if you are the type who prefers the cost-effective option, you will want to consider buying. This will give you some time to save before you look for your next new car.
The most important thing to consider when deciding between leasing a Hyundai and buying a Hyundai is to consider your personal preferences and budget.
Overall, here is quick list of things to consider in the buy vs. lease scenario:
- Monthly costs – including payments on your auto loan and insurance payments
- Overall Costs – including down payment, repairs, depreciation
- Flexibility – will you be able to utilize the vehicle for what you want and need, and will the lease offer the overall flexibility you desire?
Monthly Costs
When purchasing or leasing the lowest payment is desirable. Keep in mind, lease payments may be lower, but at the end of lease you will not own the car. With leasing you are likely to need a car again and then sign onto another lease. At the end of monthly auto loan payments, car ownership allows you to forgo monthly costs.
Insurance costs can be higher when you lease a vehicle because the lease company has the discretion of the coverage they require. It is also common for lease agreements to require gap insurance, however some lease agreements include this type of insurance. Be sure to ask about this if you are considering leasing.
Overall Costs
Be sure to consider what your down payment will be whether leasing or buying. The main difference is you won’t own the car with a lease. Discuss what down payment is necessary based on your budget. Also, look into budgeting for repairs, as they will likely be needed for purchasing a car. Even with leasing repairs for things like body work or worn tires will still be necessary.
Flexibility
Think about how often you will need or want a new vehicle? Is there a vehicle that is flexible enough to allow you to own it for several years, or will you likely need to get a smaller or larger car based on changing needs? These are good questions to ask yourself when deciding on which Hyundai to lease or buy. Keep in mind, if you lease a vehicle you have committed to the lease and if you buy you can also sell, but you also may have invested more money into the vehicle.
Buying or leasing is a personal decision you will want to do some thinking about. Whatever Hyundai you are interested in, Rosen Hyundai can help you consider your options. Your Algonquin Hyundai dealer has exceptional Hyundai service, which will arm you with confidence in your vehicle whether you buy or lease.
